*Lecturer in Commerce

Sri Sarada College for Women (Autonomous)

Salem - 636 016

Tamilnadu, India

Role of Commercial Banks in Sustainable Development of Women

Entrepreneurs in India

Dr. S. Deepa* Abstract

Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise. The Government of India has defined women entrepreneurs as ―''an enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women”. A sense towards independent decision-making on their life and career is the motivational factor behind this urge.

The glass ceilings are shattered and women are found indulged in every line of business. The entry of women into business in India is traced out as an extension of their kitchen activities, mainly 3P's, Pickle, Powder and Pappad. But with the spread of education and passage of time women started shifting from 3P's to modern 3E's i.e., Energy, Electronics and Engineering. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators.

Women entrepreneurship must be moulded properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena. If every citizen works with such an attitude towards respecting the important position occupied by women in society and understanding their vital role in the modern business field too, then very soon we can pre-estimate our chances of out beating our own conservative and rigid thought process which is the biggest barrier in our country's development process.

Keywords:

Women Entrepreneurs, India, Commercial Banks, Development

Pacific Business Review InternationalVolume 6, Issue 9, March 2014

w w w. p b r . c o . i n

Introduction stThe women of 21 century do not want to limit their lives in the four walls of

the house. They demand equal respect from their partners. However, Indian women have to go a long way to achieve equal rights and position because traditions are deep rooted in Indian society where the sociological set up has been a male dominated one. The Indian culture made them only subordinates and executors of the decisions made by other male members, in the basic family structure. While at least half the brainpower on earth belongs to women, women remain perhaps the world's most underutilized resource.

45

Pacific Business Review International

w w w. p b r . c o . i n

Despite all the social hurdles, India is brimming with the success stories of women. The transformation of social fabric of the Indian society, in terms of increased educational status of women and varied aspirations for better living, necessitated a change in the life style of Indian women. She has competed with man and successfully stood up with him in every walk of life and business is no exception for this. These women leaders are assertive, persuasive and willing to take risks. They managed to survive and succeed in this cut throat competition with their hard work, diligence and perseverance. To learn quickly from her abilities, her persuasiveness, open style of problem solving, willingness to take risks and chances, ability to motivate people, knowing how to win and lose gracefully are the strengths of the Indian women entrepreneurs.

Concept of Women Entrepreneurs

Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise. The Government of India has defined women entrepreneurs as ―''an enterprise owned and controlled by women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women”. A sense towards independent decision-making on their life and career is the motivational factor behind this urge.

Reasons for Women Becoming Entrepreneurs

The glass ceilings are shattered and women are found indulged in every line of business. The entry of women into business in India is traced out as an extension of their kitchen activities, mainly 3P's, Pickle, Powder and Pappad. But with the spread of education and passage of time women started shifting from 3P's to modern 3E's i.e., Energy, Electronics and Engineering. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures. The challenges and opportunities provided

to the women of digital era are growing rapidly that the job seekers are turning into job creators. Many women start a business due to some traumatic event, such as divorce, discrimination due to pregnancy or the corporate glass ceiling, the health of a family member, or economic reasons such as a layoff. But a new talent pool of women entrepreneurs is forming today, as more women opt to leave corporate world to chart their own destinies. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation.

Reasons for Slow Progress of Women Entrepreneurs in India

The problems and constraints experienced by women entrepreneurs have resulted in restricting the expansion of women entrepreneurship. The major barriers encountered by women entrepreneurs are:

Many women take the training by attending the Entrepreneurial Development programme without an entrepreneurial bent of mind. Women who are imparted training by various institutes must be verified on account of aptitude through the tests, interviews, etc.

High production cost of some business operations adversely affects the development of women entrepreneurs. The installations of new machineries during expansion of the productive capacity and like similar factors discourage the women entrepreneurs from venturing into new areas.

Lack of awareness about the financial assistance in the form of incentives, loans, schemes etc. by the institutions in the financial sector. So the sincere efforts taken towards women entrepreneurs may not reach the entrepreneurs in rural and backward areas.

46

w w w. p b r . c o . i n

Role of Commercial Banks in Financial Sector that Work for Women Entrepreneurs

1. Offer / design the products based on their needs

Low rate of interest based products

Collateral free

Easy processing system

Diversify products

Repayment system based on business nature

2. Adopt standards on performance in

Client reach

Efficiency, profitability

Financial integration

Impact

3. Provide appropriate support modalities—institutions that meet high standards need

Policies, regulations and legal structures that fit women entrepreneurs

Financial counseling and training

Commercial linkages

Business advisory services

Dealing with legal barriers

Commercial Banks Roles in Financial Sector that Work for the Women Entrepreneurs

Bank Finance Policy

Suitable Interest rates

Technological services providers

Financial sector policies

Central Bank policy

Legal structures

Performance indicators

Women Entrepreneurs Skills

Business Knowledge

WE networks, associations

Banking knowledge

Market knowledge & networking

Technological applications

Product Offerings

Small Credit facility

Working Capital

Loan for Machine purchase

Loan with grace period

Commercial Banks & Sustainable Development of Women Entrepreneurs

Commercial banks have provided assistance to women entrepreneurs to a large extent. This has directly led to the:

Increase in Income

Growth of Assets

Improved Standard of living

Increase in Women's Decision-making Power

Increase in Community Participation

Steps Taken for Sustainable Development of Women Entrepreneurs:

Increased attention is needed in measuring impact of bank finance for women entrepreneurs.

Liberalized interest rates for women entrepreneurs, relying on

competition and transparency to lower costs and rates.

Savings and other asset building products require attention.

Inclusive financial sector policies that incorporate measures to ensure responsive, solid services to the women entrepreneurs.

47

Volume 6, Issue 9, March 2014

w w w. p b r . c o . i n

Pacific Business Review International

An explicit, supportive government policy and strategy for women entrepreneurs, with objectives, key policies and support, roles.

Utilize technology to cut costs and expand outreach.

Build domestic financial markets for women entrepreneurs.

Information and business services for women entrepreneurs.

Schemes Provided by The Government for Women Entrepreneurs

At present, the Government of India has over 27 schemes for women operated by different departments and ministries. Some of these are:

Women's Development Corporations (WDCs)

Marketing of Non-Farm Products of Rural Women (MAHIMA)

Assistance to Rural Women in Non-Farm Development (ARWIND) schemes

Working Women's Forum

Indira Mahila Yojana

Indira Mahila Kendra

Mahila Samiti Yojana

Mahila Vikas Nidhi

Suggestions for The Growth of Women Entrepreneurs:

Right efforts from all areas are required in the development of women entrepreneurs and their greater participation in the entrepreneurial activities. Entrepreneurship basically implies being in control of one's life and activities and women entrepreneurs need to be given confidence, independence, and mobility to come out of their paradoxes. The following measures are suggested to empower the women to seize various opportunities and face challenges in business.

An Awareness programme should be conducted on a mass scale with the intention of creating awareness among women about the various areas to conduct business.

Attempts should be there to enhance the standards of education of women in general as well making effective provisions for their training, practical experience and personality development programmes, to improvise their over-all personality standards.

Organize training programmes to develop professional competencies in managerial, leadership, marketing, financial, production process, profit planning, maintaining books of accounts and other skills. This will encourage women to undertake business.

Vocational training to be extended to women community that enables them to understand the production process and production management.

Skill development to be done in women's polytechnics and industrial training institutes. Skills are put to work in training-cum-production workshops.

Educational institutes should tie up with various government and non-government agencies to assist in entrepreneurship development mainly to plan business projects.

International, National, Local trade fairs, Industrial exhibitions, seminars and conferences should be organized to help women to facilitate interaction with other women entrepreneurs.

Women in business should be offered soft loans & subsides for encouraging them into industrial activities. The financial institutions should provide more working capital assistance both for small scale venture and large scale ventures.

Making provision of micro credit system and enterprise credit system to the women entrepreneurs at local level.

The weaker section could raise funds through various schemes and incentives provided by the government to develop entrepreneurs in the state. E.g. the Prime ministers Rozgar Yojana, The Khadi and Rural village industries scheme, etc.

Attempts by various NGO's and government organizations to spread information about policies, plans and strategies on the development of women in the field of industry, trade and commerce. Women entrepreneurs should utilize the various schemes provided by the Government.

To establish all India forums to discuss the problems, grievances, issues, and filing complaints against constraints or shortcomings towards the economic progress path of women entrepreneurs and giving suitable decisions in the favor of women entrepreneurs and taking strict stand against the policies or strategies that obstruct the path of economic development of such group of women entrepreneurs.

Thus by adopting the following aforesaid measures in letter and spirit the problems associated with women can be solved. Entrepreneurship is not a bed of roses to women. Women participation in many kinds of economic activities to complement to their family income, their participation in no way reduces their family duties. The task of women has become more tedious and full of challenges.

Conclusion

It can be said that today we are in a better position wherein women participation in the field of entrepreneurship is increasing at a considerable rate. Efforts are being taken at the economy as brought promise of equality of opportunity in all spheres to the Indian women and laws guaranteed equal rights of participation in political process and equal opportunities and rights in education and employment were enacted. But unfortunately, the government sponsored development activities have benefited only a small section of women i.e. the urban middle class women. Women sector occupies nearly 45% of the Indian population. At this juncture, effective steps are needed to provide entrepreneurial awareness, orientation and skill development programs to women. Resurgence of entrepreneurship is the need of the hour emphasizing on educating women strata of population, spreading awareness and consciousness amongst women to outshine in the enterprise field, making them realize their strengths, and important position in the society Women entrepreneurship must be moulded

48

w w w. p b r . c o . i n

properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena. If every citizen works with such an attitude towards respecting the important position occupied by women in society and understanding their vital role in the modern business field too, then very soon we can pre-estimate our chances of out beating our own conservative and rigid thought process which is the biggest barrier in our country's development process.

References

Arora, R.;and Sood, S.K.(2005), ―Fundamentals of Enterpreneurship and Small Business

Baporikar, N. (2007) Entrepreneurship Development & Project Management- Himalaya Publication House.

Brush, C. (1997). Taori ,Dr. Kamal - Entrepreneurship in the Decentralised Sector Women- Owned Businesses: Obstacles and Opportunities, Journal of Developmental Entrepreneurship.

Desai, V: (1996) Dynamics of Entrepreneurial & Development & Management Himalaya publishing House - Fourth Edition, Reprint.

Dhameja S K (2002), Women Entrepreneurs: Opportunities, Performance and Problems, Deep Publisher (P) Ltd., New Delhi.

Gordon E. & Natarajan K.: (2007) Entrepreneurship Development – Himalaya Publication House, Second Revised edition.

Hattangadi Dr. Vidya: (2007) Entrepreneurship – Need of the hour, Himalaya Publication House, First edition.Schemes and Programmes of Ministry of Small Scale Industries and Ministry of Agro & Rural Industries, Govt. of India Kalyani Publishers. Kumar, A. (2004), "Financing Pat te rn of Enterpr ises Owned by Women

Entrepreneurs", The Indian Journal of Commerce, Vol. 57, No. 2.

Mahanty Sangram Keshari – Fundamentals of Entrepreneurship – Prentice Hall of India Raheem A (2006), "Role of SHGs", Yojana, Vol. 50, No. 12. Renuka V. (2001) Opportunities and challenges for women in business, India Together, Online Report, Civil Society Information Exchange Pvt. Ltd.

Websites

info@ijrcm.org.in accessed on 19 March 2013

www. Smallindustryindia.com accessed on 4 April 2013

www.dcmsme.gov.in/schemes/Schemes for the development and promotion of women entrepreneurs. PDF accessed on 4 April 2013

www.ghallabhansali.com accessed on 4 April 2013

www.icfaijournals.com accessed on 4 May 2013

www.imer.com accessed on 7 April 2013

www.ludhianadistrict.com/articles/article1184678891.html accessed on 20 April 2013

www.ludhianadistrict.com/personality/rajni-bector.php accessed on 20 April 2013

www.nawbo.org. "About NAWBO" National Association of Women Business Owners accessed on 2 May 2013

www.newsweek.com/2010/07/06/women-will-rule-the-world. accessed on 20 April 2013

www.referenceforbusiness .com/smal l /Sm-Z/Women-Entrepreneurs.html accessed on 20 April 2013

www.udyogini.org accessed on 2 April 2013

49

Volume 6, Issue 9, March 2014